Lots of people think that remortgaging their homes is a complex process or a final act of desperation, but in fact, remortgaging is actually on the rise in the UK for a variety of different reasons. Far from being a last resort, remortgaging can actually represent an excellent borrowing option for many, and at Homeline Mortgages, we offer a simple step-by-step remortgaging process that makes it straightforward and hassle-free.
Here, we’ve set the record straight on a few of the most commonly held misconceptions about remortgaging, so that your decision to remortgage will be based on facts, not myths.
Myth 1: Remortgaging my home is only a last resort when I’m out of money and borrowing options.
Fact: People don’t just remortgage their homes to raise capital or release equity; remortgaging can help you find a more secure mortgage deal (with a fixed rate, for example), or you can remortgage to a more flexible mortgage plan. If you have high rates because you had bad credit history or were self-employed when you first took out your mortgage, the right remortgage advisor can help you to find a plan that will lower your repayment rates.
Myth 2: If I remortgage my home, I’ll put myself into even more debt.
Fact: As mortgage interest rates are often lower than credit card rates, remortgaging your home could be a good way to consolidate your personal loan and credit card debts. Although in the long term, you may end up paying more by adding these debts to your mortgage, it can give you much-needed extra leeway to repay your debts over an extended time.
Myth 3: I need flawless credit history to remortgage my home.
Fact: If you have an experienced remortgage advisor, you can still remortgage your home if your credit is less than ideal. Even though you won’t get the best rates available, it’s still a chance to show that you can make your payments on time and improve your credit rating.
Myth 4: I can go directly to a lender and arrange my remortgage on my own.
Fact: If you go directly to a lender to remortgage your home, you can only access the best rates the lender has to offer, and there’s no way for you to gauge industry standards or the other remortgaging possibilities out there. However, a remortgage advisor can give you the guidance to get the best possible remortgage rates and deals, to suit your budget and your own unique requirements; an advisor can also point you in the right direction if your lender isn’t up to par.
There’s a lot of false information out there when it comes to remortgaging, so it’s easy to get intimidated or caught in common pitfalls.
That’s why Homeline Mortgage gives expert advice you can trust, whether you’re buying your first home, climbing the property ladder, or remortgaging, so contact us today and see how we can set you on the right track to remortgage your home.